Imaginationland: If Local Governments Were Taxed For Existing

Let’s imagine the federal government implements a ‘local service tax’ which is magically found to be constitutional.

This tax requires all local governments to pay a fee of $100,000 for services rendered by the federal government to local governments, whether it be guidance, data provision, protection, etc. The measure itself, given current local government numbers, would generate around $7.5 billion dollars in revenue for the federal government. For the following analysis, there are another two assumptions: First: the tax is based upon the amount of special districts, independent school districts, county, and municipal governments; and second: square miles of land require more government resources than do square miles of water. Below is a graph which demonstrates the responsibility of state’s local governments to pay the tax per square miles by their obligation per capita:

Click to Enlarge. Sources:  (U.S. Census Bureau, 2007), (U.S. Census Bureau, 2004), and (U.S. Census Bureau, 2009)

Considering that government expenditures are tax-exempt from the federal income tax – highest amount of tax-exempt expenditures per square mile/person represented by data points furthest from their respective axis – does it make sense that we allow states to determine their level of local services by themselves?

Further, North Dakota? Delaware? New Jersey? Why are these states so plush with local government services per square mile/person?

Are North Dakotan’s exceptionally needy?

Does Delaware or New Jersey need exceptionally green grass?

Does New Jersey have grass?


~ by StateHate on December 1, 2009.

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